Indeed Brewing, a craft brewery started in 2012 and experiencing significant growth, needed greater consistency with their margins and gross profits at the distributor level. As the company expanded into new geographies, it was important to undertake a review of their current pricing structure, strategies, and tactics to uncover opportunities for sales performance and revenue enhancements.
Baker Tilly developed and administered a pricing survey to help Indeed understand the current wholesaler and retail pricing environment and strategic options to better position their brands/packages with their distributors. Survey results demonstrated a number of areas where Indeed could enhance its margins and profitability. Once these areas were identified, Baker Tilly created materials to be used in distributor meetings, developed pricing models to determine the appropriate pricing levels, and helped Indeed with strategy to negotiate with its distributor partners.
As a result of this project, Indeed was able to identify pricing inefficiencies and adjust their strategy to gain additional support from their wholesaler partners and maintain or improve retailer margins. Indeed was able to capitalize on a more balanced brand/package alignment within their portfolio and enhancement of their margins.
“Baker Tilly has provided our quickly growing brewery with guidance on numerous aspects of our business including pricing, distributor relationships, and financial modeling. Their depth of experience and understanding of the industry has been an invaluable resource to us as we face the incredible challenge of intense growth. Most importantly, Baker Tilly has always taken the time to fully understand our business goals and the unique company culture that drives us towards those goals.”– Tom Whisenand, Co-Founder
For more information on this topic, or to learn how Baker Tilly craft brewery specialists can help, contact our team.